Commerce · Class 11 Commerce
Ch 20International Finance — Class 11 Commerce, concept-first.
A business that buys or sells only within its own country deals in a single currency, faces one set of laws, and can usually raise money from banks and investors it already knows.
Key concepts
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Foreign Exchange and Exchange Rate
Foreign exchange is the conversion of one country's currency into another so that an international transaction can be settled, and the foreign exchange market is the worldwide network of banks and dealers through which t…
Most relevant Q&A
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Meaning and Need for International Finance
A business that buys or sells only within its own country deals in a single currency, faces one set of laws, and can usually raise money from banks and investors it already knows.
Foreign Exchange, the Foreign Exchange Market and Exchange Rate
Every international transaction eventually requires one currency to be converted into another, because a seller ordinarily wants to be paid in its own home currency while a buyer usually holds a diffe…
Financing and Securing International Trade Transactions
When an exporter in one country sells goods to an importer in another country, both sides face a genuine trust problem that rarely exists in a purely domestic sale.
Foreign Direct Investment and Foreign Portfolio Investment
Once a business looks beyond financing a single trade transaction and starts raising longer-term capital across borders, two of the most important routes it can use -- or that a foreign investor can u…
External Commercial Borrowings, Depository Receipts and International Bonds
Beyond FDI and FPI, a business looking to raise international finance -- particularly a larger company that wants to tap global lenders and investors directly -- has several other well-established ins…
International Financial Institutions and Choosing a Source of International Finance
Alongside private banks, capital markets and foreign investors, a number of international financial institutions also play a role in providing finance to countries and, in turn, to businesses operatin…
Very Short Answer Questions
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Short Answer Questions
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Long Answer Questions
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- Q11Explain the various sources of international finance available to a business.Free
- Q12Discuss the factors that a business should consider while choosing a source of international finance.Preview
- Q13Explain the meaning and need for international finance, and describe the methods used to finance and secure international trade transactions…Preview
Sample & Board Papers
Sample papers and previous-year board questions for this subject.
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- Q1State any three features of American Deposit Receipt.Preview
- Q2An instrument representing ownership interest in securities of foreign issuer is called ______. (a) A depository receipt (b) An ownership re…Preview
- Q3(a) Distinguish between GDR and ADR. (Any 5) OR (b) Explain the different types of Retailers. (Any 5)Preview
- Q4______ is a special type of bond issued by the companies to raise money in foreign currency. (a) Corporate Bonds (b) Government Bonds (c) Gl…Preview
- Q5What is a Global Depository Receipt (GDR) ?Preview
- Q6An instrument representing ownership interest in securities of a foreign issuer is called ________. (a) a depository receipt (b) an ownershi…Preview
- Q7Explain any three disadvantages of Foreign Direct Investment.Preview
- Q8(a) Distinguish between GDR and ADR. OR (b) Distinguish between internal and international trade.Preview
More questions
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- Q1Which of the following instruments represents shares of a foreign company and is typically listed and traded on European stock exchanges? (A…Free
- Q2Which instrument is issued by a bank on behalf of an importer, guaranteeing that payment will be made to the exporter once the specified doc…Free
- Q3Which type of foreign investment involves buying the shares or bonds of a foreign company purely for financial return, without seeking any c…Preview
- Q4A negotiable instrument drawn by an exporter, directing the importer to pay a certain sum of money for goods exported, is called a: (A) Bill…Preview
- Q5Depository receipts representing shares of a foreign company that are specifically listed and traded on stock exchanges in the United States…Preview